09:14     SHENZHEN DONGJIANG ENVIRONMENTAL COMPANY LTD <08230>-Ann (1)        

                                                                              
    The Stock Exchange of Hong Kong Limited (the `Stock Exchange') and        
    Hong Kong Securities Clearing Company Limited (`HKSCC') take no           
    responsibility for the contents of this announcement, make no             
    representation as to its accuracy or completeness and expressly           
    disclaim any liability whatsoever for any loss howsoever arising from     
    or in reliance upon the whole or any part of the contents of this         
    announcement.                                                             
                                                                              
    This announcement is for information purposes only and does not           
    constitute an invitation or offer to acquire, purchase or subscribe       
    for securities.                                                           
                                                                              
    SHENZHEN DONGJIANG ENVIRONMENTAL COMPANY LIMITED*                         
    (a joint stock limited company incorporated in the People's Republic      
    of China)                                                                 
                                                                              
                                                                              
                                      PROPOSED LISTING                        
                                              ON                              
                                THE GROWTH ENTERPRISE MARKET                  
                                              OF                              
                             THE STOCK EXCHANGE OF HONG KONG LIMITED          
                                  BY WAY OF PLACING OF H SHARES               
                                                                              
    Number of Placing Shares     : 170,500,000 H Shares (subject              
                                   to Over-allotment Option)                  
                                   comprising 155,000,000 New H               
                                   Shares (subject to                         
                                   adjustment) 15,500,000 Sale H              
                                   Shares (subject to                         
                                   adjustment) (placing of Sale               
                                   H Shares is made in pursuance              
                                   of the Provisional                         
                                   Administrative Measures for                
                                   State-owned Share Reduction)               
    Placing Price                : not more than HK$0.41 per H                
                                   Share and not less than                    
                                   HK$0.31 per H Share                        
    Nominal value                : RMB0.10 each                               
    Stock code                   : 8230                                       
                                                                              
    Sponsor                                                                   
                                                                              
       FIRST SHANGHAI CAPITAL LIMITED                                         
                                                                              
    Bookrunner and Lead Manager                                               
                                                                              
       FIRST SHANGHAI SECURITIES LIMITED                                      
                                                                              
    Co-Lead Manager                                                           
                                                                              
       SBI E2-Capital Securities Limited                                      
                                                                              
    Co-Manager                                                                
                                                                              
       Core Pacific-Yamaichi International (H.K.) Limited                     
       Guotai Junan Securities (Hong Kong) Limited                            
       KGI Capital Asia Limited                                               
       Kingsway SW Securities Limited                                         
       Prudential Brokerage Ltd                                               
       Tai Fook Securities Company Limited                                    
       UOB Asia (Hong Kong) Limited                                           
       Wintech Securities Limited                                             
                                                                              
    Unless otherwise defined herein, all terms used in this announcement      
    have the same meanings as defined in the prospectus of  (Shenzhen         
    Dongjiang Environmental Company Limited) (the `Company') dated 23         
    January, 2003 (the `Prospectus').                                         
                                                                              
    Copies of the Prospectus required by the GEM Listing Rules are            
    available, for information purposes only, during normal office hours      
    (9:00 a.m. - 5:00 p.m.) from 4:00 p.m., Thursday, 23 January, 2003 to     
    Friday, 14 February, 2003 (both dates inclusive) at the office of         
    First Shanghai Capital Limited at 19/F, Wing On House, 71 Des Voeux       
    Road Central, Hong Kong.                                                  
                                                                              
    Applications for the Placing Shares of RMB0.10 each will only be          
    considered on the basis of the terms and conditions of the                
    Prospectus. The Placing is conditional upon the fulfillment of the        
    conditions as set forth in the paragraph headed `Conditions of the        
    Placing' in the section headed `Structure and conditions of the           
    Placing' in the Prospectus. If such conditions as referred therein        
    are not fulfilled on or before 22 February, 2003, the Placing will        
    lapse and all monies will be refunded to applicants of the Placing,       
    without interest and the Stock Exchange will be notified immediately.     
    An announcement will be made on the next day following such lapse.        
                                                                              
    Pursuant to the Underwriting Agreement, the Company and the Vendors       
    have granted First Shanghai Securities Limited                            
    (on behalf of the Underwriters) the right but not                         
    the obligation to exercise the Over-allotment Option at any time and      
    from time to time within 30 days from the date of the Prospectus, to      
    require the Company to allot and issue up to 23,200,000 additional H